After the falls of almost 2 percentage points in the European stock market last week caused mainly by a worse-than-expected inflation data, this Monday futures point to a slight rebound in the Old Continent.
This, in a context in which the week is going to be completely marked by the meeting of the Federal Reserve, from which a decision to raise interest rates will come out, which, according to experts, will be between 75 basic points and 100.
From a technical point of view, “the European stock markets are managing to stay above the lows of two weeks ago and which were the origin of the last short-term rebound, something that we cannot say on the other side of the Atlantic; these lows are 3,450 points of the EuroStoxx and as long as they are not lost I refuse to cancel the hypothesis of the bullish reconstruction”, explains Joan Cabrero, adviser to Ecotrader.
Of course, “for the EuroStoxx to confirm this bullish hypothesis, it must break resistance at 3,800 points and while that does not happen, we must also monitor the behavior of the Dax 40, which would have similar levels, which go through 13,570 points and the level of key support at 12,400”, concludes the expert.
Gold is no longer a refuge
Despite the enormous uncertainty surrounding the markets in recent months, the price of gold continues to fall and is already at lows not seen since April 2020. So far this year, it has lost about 9% of its value, reaching 1,666 dollars per ounce.
The causes of this decline, according to experts, is, on the one hand, in the strength of the dollar, which makes it less affordable for the rest of the currencies to buy a metal referenced in the greenback and, on the other, the increases in yields of fixed rent.
Bonds calm before the Fed
Futures in fixed income trading are pointing to a weekly start with light purchases in a key week in monetary policy, with the Federal Reserve rate meeting, in which a rise of between 75 and 100 basis points is expected.
In the foreign exchange market, the euro has returned to be below parity at the beginning of the week, also waiting for the acceleration of Powell’s this Wednesday.